From the second half of next year, investors would be able to buy shares in quantities of less than 1,000 during regular trading hours, the Financial Supervisory Commission said yesterday.
The commission approved the Taiwan Securities Association’s proposal to implement odd-lot intraday trading, with more than 10 local brokerages expressing their willingness to handle the new service, Securities and Futures Bureau Deputy Director Sam Chang (張振山) told a news conference in Taipei.
Currently, odd-lot trades are only permitted in after-hours trading, with buyers and sellers placing orders from 1:40pm to 2:30pm and the call auction mechanism matching the orders once after 2:30pm, Chang said.
After odd-lot intraday trading is launched next year, buyers and sellers could place their orders from 9am to 1:30pm and the system would begin matching the orders at 9:10am, the same as standard-unit trading, Chang said.
As there would be fewer odd-lot trades, it would take the system 10 minutes to match orders, while it takes five seconds for the call auction mechanism to match standard-unit orders, he said.
The Taiwan Stock Exchange’s (TWSE) continuous trading system that it is to be implemented in March next year would be separate from odd-lot intraday trading, he said.
The commission supports odd-lot intraday trading, as it would make big-ticket stocks more affordable for individual investors, Chang said.
For example, a standard-lot purchase of smartphone camera lens maker Largan Precision Co (大立光) shares would cost more than NT$4 million (US$128,679) based on yesterday’s closing price of NT$4,365, beyond the reach of many individual investors, he said.
Although the volume of after-hours odd-lot trading made up only 0.1 to 0.3 percent of the TWSE’s total volume, the commission expects the number to increase after the system is launched next year, Chang said.
The average daily turnover of after-hours odd-lot trading totaled NT$85 million in 2016, but rose to NT$141 million in 2017 and NT$130 million last year, Chang said, adding that it averaged NT$126 million in the first six months of this year.
Local securities houses would be required to provide a separate transactional interface for odd-lot traders, so retail investors would not confuse the orders with trading in standard units, the commission said.
Odd-lot traders would also be asked to place orders online rather than calling stock brokers by telephone to enhance efficiency, it added.
The TAIEX yesterday rose 5.65 points, or 0.05 percent, to close at 10,941.41 on turnover of NT$132.87 billion, TWSE data showed.
STEPPING UP: The firm has also asked employees to work in split shifts from this week and to halt all but essential overseas business travel from next month Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has implemented a remote work policy for employees not on production lines in an attempt to curb the spread of COVID-19, the world’s largest contract chipmaker said yesterday. This is the first time in the Hsinchu-based company’s history that it has launched a large-scale remote work policy, joining global technology companies, such as Apple Inc and Google, that encourage employees to work from home. The chipmaker has also asked employees to work in split shifts from this week, it said. As the number of virus infections continues to climb worldwide, TSMC has urged employees to halt unnecessary
A two-hour drive south of Amsterdam in Veldhoven, workers decked out head-to-toe in protective gear toil in vast assembly halls. Before entering the inner sanctuary of the facilities, they meticulously layer on masks, gloves and special socks. A single speck of dust or a hair can have devastating effects on production. The result of all this painstaking process is an environment that is 10,000 times more purified than outside. As COVID-19 grips the world, it might just be the safest place to work right now. The teams belong to ASML Holding NV, which holds a de facto monopoly on the industry of
DBS Bank Ltd yesterday hacked its GDP growth forecast for Taiwan this year to 0.9 percent, down from its estimate of 2.3 percent two months earlier, in light of the COVID-19 pandemic and increasing financial market volatility. The bank’s latest forecast was even lower than London-based IHS Markit Ltd’s estimate of 1 percent, while other research institutes’ projections range from 1.6 percent to 2.6 percent. Taiwan’s economic momentum is being negatively affected by the pandemic, DBS said. The rapid spread of the disease from Asia to Europe and the US has dampened the bank’s previous expectation of a “V-shaped” global rebound in the
DOWNSIDE RISKS: Firms have a ‘very low’ chance of boosting investment returns in the next two years, making it hard for them to improve their capitalization, an analyst said Taiwanese life insurers wanting to improve their capital structure face strong headwinds this year, given prolonged low interest rates and economic impacts derived from trade protectionism and the COVID-19 pandemic, Taiwan Ratings Corp (中華信評) said on Friday. The local life insurance sector also still has high asset risks and such risks are susceptible to market volatility, the local arm of Standard & Poor’s Global Ratings said. Since last year, major financial holding companies — including CTBC Financial Holding Co (中信金控), Cathay Financial Holding Co (國泰金控) and Shin Kong Financial Holding Co (新光金控) — have announced plans to raise fresh capital to